AI is Having An Immediate And Massive Impact On Big PharmaMedical Research Is Being Turned On Its Head And Property Strategies Will Have To Change
I came across an insightful article by Paul Armstrong in City AM (25-02-25) on AI’s radical impact on the pharma industry - especially its evolving property needs.
Paul Armstrong, founder of TBD Group and author of Disruptive Technologies, dives into these shifts.
I’ve summarised it to around a third of its original size and put on my own spin as well as adding my own commentary on AI’s key effects on Big Pharma’s property demands, but to read the full article, access City AM’s excellent web site at https://www.cityam.com.
AI recently cracked a superbug problem in 48 hours - something that used to take scientists a decade. That’s not just a cool science story; it’s a sign of what’s coming. AI isn’t just making breakthroughs faster - it’s doing it at a such a pace that businesses, governments, and entire industries can’t keep up.
The Old Rules? Forget Them.
Traditionally, medical research followed a slow methodical process. AI just shredded that playbook. Hypotheses, experiments, refinements? AI is handling those in hours, not years. The first industries to feel the impact? Healthcare, pharma, and drug development. But the ripple effect will hit everyone.
Think about how Ozempic, a single weight-loss drug, has already shaken up healthcare, food industries, and even the stock market. Now imagine AI accelerating all breakthroughs that quickly. Insurance models? Workforce health projections? Retirement planning? They’re all about to be turned upside down.
What This Means for Business
If AI extends human life or predicts diseases before they start, the whole idea of career spans and retirement shifts. Companies will need to rethink pensions, workforce planning, and even employee benefits. If retirement ages push back by a decade, that changes everything from talent retention to healthcare policies.
And insurance? A complete shake-up. Traditional risk calculations rely on historical data, but AI is rewriting human health in real time. Insurers that don’t adapt will be stuck with outdated models, leading to pricing disasters and financial losses.
Supply Chains and Investing? Also on the Chopping Block
A world where pandemics are solved in days instead of years will force global trade and production to move at breakneck speeds. Pharma companies, vaccine logistics, and raw material suppliers will have to shift from slow, resilience-based planning to rapid response strategies.
For investors, AI-driven breakthroughs mean traditional R&D cycles no longer dictate a company’s value. A biotech firm with a “five-year roadmap” might get blindsided when AI slashes that timeline to months. Investors who don’t build real-time AI foresight into their strategies risk backing companies that are obsolete before they even launch.
What Should Businesses Do?
Leaders need to ditch five-year plans and shift to real-time adaptability. The old strategy of waiting for regulatory clarity? That’s a recipe for being left behind. AI isn’t slowing down, and neither are the industries embracing it. Quarterly or even six-month reviews of AI-driven discoveries will be crucial. Many advancements won’t be public knowledge right away, but staying informed - and forming the right partnerships - will be the difference between leading an industry or being acquired by one that does.
SUMMARY OF AI’s IMPACT ON PROPERTY NEEDS
Impacts on corporate real estate involve reducing physical footprints while driving demand for high-tech, flexible workspaces.
Key Impacts:
• Smaller Manufacturing Facilities: AI-driven optimisation in drug development cuts production volumes, requiring less space.
• Rise of Data Centres: The surge in AI-generated data demands robust storage and processing infrastructure.
• Specialised Labs: AI-driven precision in drug discovery increases the need for niche research spaces.
• Flexible Workspaces: A growing AI workforce calls for collaborative, innovation-friendly environments.
• Remote Work Expansion: AI enables off-site research and analysis, reducing traditional office needs.
• Automated Labs: AI-powered automation streamlines lab setups, minimising space requirements.
• AI is redefining operations: Such as how and where companies operate, balancing efficiency with the need for cutting-edge work environments.
• Remote work capabilities: AI could enable more remote work opportunities for researchers and analysts, potentially reducing the need for large on-site office space.
• Advanced automation in labs: Automation powered by AI can minimise the need for extensive manual laboratory space, allowing for more compact lab setups.
The Bottom Line
AI isn’t about who uses it - it’s about who’s ready for what it discovers next. The businesses that prepare now will be the ones shaping the future.
The ones waiting for the memo? They’ll be playing catch-up indefinitely